Pentaxor, thanks for the tips. The highkey makes the jpeg looks better as it brightens it without having to do exposure compensation. This way the shutter speed is not lowered but the scene is still brighter and thus less noise. Thank you for the tips.
But, I still prefer RAW conversion. Iso 1600 is a breeze with the k-7 jpeg, and with RAW and NR iso 3200 is very useable. I just took some quick hand held shots and compared.
Fairly low light for f2, iso 3200 and 1/15. To me the RAW conversion has more depth and reality to it, even at iso 3200.
Jpeg (normal exposure, not ETTR and pulled back)
RAW with NR
100% crops of the RAW NR image
I wonder whether K-x can give this at iso 6400 for a 1-stop advantage.